Analysis of the BLS Employment Situation Report Employment Summary for May 2015
JUNE
|
2015
VOLUME 9
| ISSUE 6
The most recent report from the U.S. Bureau of Labor Statistics revealed that the job market rebounded throughout the month of April, contributing to a lower unemployment rate. Job creation on the rise Overall, the nation added 223,000 jobs during April. Although this was slightly lower than the 224,000 jobs projected by economists, it demonstrated a return to the positive growth trend seen over the last 12 months, compared to the 85,000 positions added in March. About 62,000 of these jobs were in the professional and business service sectors, which had been averaging just 35,000 new positions each month. Within this larger field, services to buildings and dwellings added 16,000 positions, computer systems design and related services added 9,000 jobs, business support services grew its workforce by 7,000 and technical consulting services expanded by 6,000 positions. The healthcare industry created 45,000 jobs in April, with ambulatory care services gaining 25,000 positions, hospitals adding 12,000 jobs and residential care facilities expanding by 8,000 positions. The construction industry also experienced growth after having a stagnant March. The field gained 45,000 positions, with 41,000 of these jobs being specialty trade contractors. Transportation and warehousing gained 15,000 jobs. Sectors that saw little change in April included manufacturing, wholesale trade, information, retail trade, leisure and hospitality, government and financial activities.
Unemployment rate ticks down As a result of this significant job growth, the U.S. unemployment rate dropped slightly to an average of 5.4 percent. Bloomberg Business reported that this is the lowest jobless rate the country has seen since May 2008. The BLS report revealed that wages grew as well. Average hourly earnings went up by 3 cents to $24.87, while average hourly earnings for private sector production and nonsupervisory employees grew by 2 cents to $20.90. Bloomberg explained that while any compensation increases are a positive sign of growth, these minuscule expansions are unexpectedly low compared to rates of overall job growth. "The pace of employment is quite encouraging. Wage growth is accelerating, but it's quite gradual, more gradual than we would expect in a market where the unemployment rate is 5.4 percent," Gregory Daco, head of U.S. macroeconomics at Oxford Economics USA Inc., told Bloomberg. The New York Times reported that the April employment data suggests the Federal Reserve will not be in any rush to take it's long-awaited first step in raising short-term interest rates, which have been near zero since the onset of the financial crisis in 2008. According to the source, most experts now expect the Feds to move in September or beyond as the probable beginning of any gradual tightening effort by the central bank.
Chart 1. Unemployment rate, seasonally adjusted, May 2013 – May 2015
Chart 2. Nonfarm payroll employment over-themonth change, seasonally adjusted, May 2013 – May 2015
Percent
Thousands 400
10.0
350 300
9.0
250 200
8.0
150 100
7.0
50 0
6.0
-50 -100
5.0 May-13
Aug-13
Nov-13 Feb-13
May-14
Aug-14
Nov -14
Feb-15
May-15
May-13
Aug-13
Nov-13 Feb-13
May-14
Aug-14
Nov -14
Feb-15
May-15
FIRST FRIDAY REPORT Leveraging Diversity Recruitment as a Branding Strategy Diversity recruitment programs have long been a means of promoting inclusion and tolerance, and upholding antidiscrimination regulations that began with the Civil Rights Act of 1964. We're all familiar with the standard EOE statements and diversity quotas that exist at many organizations. However, in today's work environment, companies are beginning to look at how they can leverage fresh perspectives on diversity as a branding strategy to recruit and retain top talent. These branding strategies are becoming increasingly important as we prepare to meet the generational challenges and needs of the 2020 workforce, which will contain Millennials, Gen-Xers and Baby Boomers. Discussions around diversity used to primarily focus on the prevention of labor force discrimination. Employers are now expanding upon that to consider the value and impact that diversity of ideas can have on employee engagement, as well as company growth and performance. Recruiting and retaining talent with unique problem solving approaches, varied skill sets and cultural backgrounds enables everyone on the team to gain insight and inspiration that encourage a more collaborative environment. The role of diversity will be further challenged by Millennials who are projected to make up 50 percent of the 2020 workforce. This generational group is very focused on the authenticity and meaningfulness of initiatives, so they will potentially seek to reevaluate how diversity recruitment programs should be implemented in the years to come. "Gone are the days of homogeneous work environments, where everyone basically has the same approach to an organization's business operations," says Nancy Halverson, vice president of global operations for MRINetwork. "Globalization is the future of commerce, and in order for organizations to remain competitive, they will need to attract and engage top candidates that think differently and attack work differently from what the company has been previous accustomed. Employers that are able to communicate their commitment to this modern version of diversity, as a key component of their branding strategy, will be the most successful at enticing the best talent." For employers looking to revisit their diversity recruitment and branding efforts, Halverson advises starting with one initiative at a time. Here are some examples of potential initiatives: Employee Development Committees - Open to all employees, these groups focus on providing networking, mentoring and career development opportunities to meet the specific needs of various members of staff including women, minorities, LGBT and veterans. Heritage Events - Typically focused on nationally recognized months such as Black History Month (February), Women's
History Month (March) or National Disability Employment Awareness Month (October), your organization can use these events to celebrate the contributions of these groups to American society and culture. Vendor Diversity Programs - Serving as a community outreach effort, the goal of these programs is to partner with small or disadvantaged groups like minority institutions, veteran associations or HUBZone businesses that are interested in working as a supplier for your company, and provide mentoring opportunities that increase the number of successful individuals within these organizations. Once you determine your starting initiative, be sure to discuss it during the interviewing and onboarding processes. Promote it on the website in areas where you discuss the company culture, leverage it in marketing materials, and via community or public relations initiatives. Internally promote via flyers, email, intranets and internal work-related networks such as Yammer. For organizations that already have diversity programs, consider surveying your staff annually to gauge their level of satisfaction and determine if these initiatives are meeting their needs. Then look at these programs, one by one, to see how they can be better implemented to provide meaning and value to employees. Ultimately, companies will have to determine if simply meeting the legal diversity requirements affects productivity and the organization's culture. Halverson adds, "Whether it's acceptance of your employees' race, age, sexual orientation or outside the box thinking, diversity recruitment really should be evaluated by how well employers celebrate and brand, both internally and externally, difference and flexibility within a variety of functions in the workforce."
